Akanda Corporation acquires Holigen from Flowr for €26 million with an eye on adult use

Akanda Corporation, a UK-based company with operations in Africa, acquired the Portuguese company Holigen from Flowr Corporation for €26 million, thus achieving GMP certification in the European Union. With the indoor cultivation unit in Sintra, designed to produce more than two tons of medical cannabis per year, Akanda is also positioning itself for the adult use market, also acquiring the Aljustrel production unit, with about 40 hectares. This transaction guarantees Akanda a leading position in the cannabis sector in Europe, the Middle East and Africa (EMEA).

Akanda already owned a growing facility in Lesotho, one of the first African countries to legalize medical cannabis, and CanMart, an import and distribution company that supplies pharmacies and clinics in the UK. Cannareporter has tried to contact Akanda CEO Tej Virk, but to no avail so far.

The deal will add valuable cultivation, manufacturing and distribution assets to publicly traded Akanda (NASDAQ: AKAN) to “accelerate the seed-to-patient model and meet high demand in European medical cannabis markets, as well as position it in the adult use market as regulations evolve,” says Press release.

A Holigen, which owns the Portuguese subsidiary RPK Biopharma, was acquired in June 2019 by Flowr Corporation and obtained a license from Infarmed shortly afterwards, in July 2019, having been considered a PIN – Project of National Interest, by investing more than 40 million euros in Portugal.

In early 2022, Flowr announced that subsidiary Holigen had successfully completed the first medical cannabis crop with high THC content at the Sintra facilities, expecting to harvest approximately 300 kilos in the first quarter. Estimates point to an annual production of more than two tons of “cannabis premium“ in one of the few units with European certification of good manufacturing practices (GMP), in addition to more than 100 tons of cannabis grown outside, in Aljustrel.

Under the terms of the acquisition, Akanda will also benefit from the genetic library provided by Flowr, including its award-winning BC Pink Kush, BC Black Cherry and BC Strawnana, as well as some new exotic genetics that will be exported to Portugal from Canada. Initial trials underway for both medical cannabis genetics are indicating high levels of THC content, greater than 25%.

The European medical cannabis market continues to grow as other countries update their medical cannabis laws. Prohibition Partners estimates that the medical market generated approximately $382 million in 2022 and will reach $2,5 billion by 2026.